Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
1
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
E M B E D D I N G VALUE-DRIVEN GROWTH
S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 - 2 0 BUILDING
BEYOND TOMORROW
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
ABOUT THE REPORT
“Embedding value-driven growth” is the ninth annual sustainability
report of Mahindra Lifespace Developers Limited (‘Mahindra
Lifespaces’, ‘MLDL’, or the ‘Company’). The report has been
prepared in accordance with the Global Reporting Initiative (GRI)
Standards: Core Option.
Increasingly, investors and other stakeholders are seeking
information on the ability of a company to create value over short,
medium, and long-term time horizon. Keeping this in mind, Mahindra
Lifespaces has initiated transition towards Integrated Reporting,
which will reflect how our strategy, governance, and performance
lead to the creation of value for our stakeholders. This year, we
have adopted some of the key guiding principles and content
elements of the Integrated Reporting <IR> framework from the
International Integrated Reporting Council (IIRC) while preparing
our Sustainability Report.
SCOPE AND BOUNDARY
The report covers the operations of the company under the brands of
‘Mahindra Lifespaces’ and ‘Happinest’ (residential developments),
and ‘Mahindra World Cities’ and ‘ORIGINS’ (integrated cities and
industrial clusters), unless otherwise stated. There has been no
significant change from the previous reporting period in reporting
scope and boundary. The report excludes our international
operations, joint ventures, and the following subsidiaries: •
Mahindra World City (Maharashtra) Ltd. • Industrial Township
(Maharashtra) Ltd. • Anthurium Developers Ltd. • Knowledge Township
Ltd. • Mahindra Infrastructure Developers Ltd. • Mahindra Water
Utilities Ltd. • Moonshine Construction Pvt. Ltd. • Deep Mangal
Developers Pvt. Ltd. • Mahindra Construction Company Ltd. •
Mahindra Knowledge Park (Mohali) Ltd.
DEFINING REPORT CONTENT
The report presents quantitative and qualitative disclosures on how
our business and associated activities, and our strategy is aligned
to deliver value to our stakeholders, and performance on material
issues for the period April 1, 2019 – March 31, 2020. These
material issues have been identified through stakeholder engagement
and review of global and sectoral sustainability trends; and mapped
to the six capitals defined under the <IR> framework. It also
highlights our contributions towards achieving the UN Sustainable
Development Goals (SDGs). This year, we have restated the data on
energy consumption and Scope 3 emissions for reporting period
2018-19.
Mahindra Lifespaces acknowledges the support provided by
Thinkthrough Consulting Private Limited in the compilation of this
report
EXTERNAL ASSURANCE
The content and data disclosed in this report has been externally
assured by KPMG India as per International Standard on Assurance
Engagement (ISAE) 3000 (Revised) – limited assurance criteria and
AA1000 Assurance Standard 2008.
We welcome your feedback on our report and performance at
[email protected].
2
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
3
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Mahindra Lifespaces: Pioneering development of
green homes Leaders speak A Year in review
Ensuring employee well-being and business continuity:
Our response to COVID-19 pandemic
Strengthening integrity and compliance
Financial Capital: Optimising returns for
stakeholders
footprint
tomorrow
enabling team
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
• Mid-premium multi-family apartment complexes
• 2.17 million sq. ft. under execution • 3.51 million sq. ft. in
pipeline
1 As on 31st March, 2020
• Quality affordable houses catering to the emerging
middle-class
• 1.40 million sq. ft. under execution • 0.73 million sq. ft. in
pipeline
• Integrated infrastructure for companies in manufacturing and
services sector along with residential and social
infrastructure
• Around 4,400 acres of area under development/ management at
Jaipur and Chennai
• Industrial clusters of area 250-600 acres each in proximity of
high growth corridors
• Currently, developing 2 industrial clusters in Chennai and
Ahmedabad
OUR OFFERINGS1
Mahindra Lifespaces – Pioneering development of green homes
Established in 1994, Mahindra Lifespace Developers Ltd. is the real
estate and infrastructure development business of the Mahindra
Group, and a pioneer of sustainable urbanisation in India. We
develop green, innovative, and customer-focused solutions that are
rooted in a legacy of trust and transparency. Our developments are
characterised by thoughtful design and a welcoming environment that
enhance overall quality of life for both individuals and
industries.
Beginning as a steel business in 1945, the Mahindra Group now
encompasses operations across 20 industries and 10 sectors. It
enjoys a leadership position in utility vehicles, information
technology, financial services, and vacation ownership in India,
along with a strong presence in other businesses. Guided by the
three pillars – ‘Accepting no limits, alternative thinking, and
driving positive change’, it strives to build not just products and
services, but new possibilities for a truly sustainable
future.
This year marks 25 years of the Company along with its subsidiary
companies’ engagement in various infrastructure projects including
development of real estate residential projects in the mid-premium
and affordable housing segments, and integrated cities and
industrial clusters.
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
4
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
5
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
OUR MISSION
CORE VALUES
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Quality is the key to delivering value for money
to our customers. We continue to make quality
a driving value in our work, in our products and in our
interactions with others. We will do it 'First Time Right'.
We value individual dignity, uphold the right to express
disagreement, and respect
the time and efforts of others. Through our actions,
we nurture fairness, trust and transparency.
We exist and prosper only because of the
customer. We respond to the changing needs
and expectations of our customers speedily,
courteously and effectively.
As in the past, we continue to seek long term success that is in
alignment with our country's need. We
continue to do this without compromising on ethical
business standards.
QUALITY FOCUS
CUSTOMER FIRST
We have always sought the best people for the job and
given them the freedom and the opportunity to grow, and we continue
to do so. We support innovation and
well-reasoned risk taking, and demand performance.
PROFESSIONALISM
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
6
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Urbanisation is integral to India’s economic growth. Over 40% (600
million) of the
country’s population is expected to live in urban centres by 2030.
This
rapid urbanisation would indelibly impact inclusive and sustainable
growth and poverty alleviation - central to the achievement of
goals committed by India to the UN Sustainable Goals 2030 agenda.
It is, therefore, exceedingly critical for India to identify and
address the adverse
trade-offs to its potential growth trajectory.
Mahindra Lifespaces and its business operations and strategy
are
tightly aligned to Goal 11 – ‘Sustainable Cities and Communities’.
Guided by its
mission of “Transforming urban landscapes by creating sustainable
communities”, Mahindra Lifespaces ensures that its residential and
industrial products fulfil customer needs and aspirations while
being socially and environmentally responsible. Till date,
completed and ongoing projects are estimated to comprise over 22
million sq. ft. of green construction.
The real estate sector has been grappling with the concurrent
challenges of unsold inventory, softening demand, demanding
investors, and incomplete projects across India. Taken together,
these have held back financial performance and weakened balance
sheets. The collapse of Non-Banking Financial Companies (NBFCs)
compounded these woes further. The Covid-19 pandemic has come at an
inopportune time. While there will be operational hiccups, we will
be setting our sights on opportunities for adoption of technologies
to enable efficient operation and communication. It is evident that
a work from home regime may change office utilisation, as well as
re-calibrate acceptable norms for density at commercial and
residential spaces. We understand that the demand for “smart” homes
by millennials, that represent a large section of potential
customers, would drive trends in the real estate sector for
cost-effective and sustainable living habitats.
This pandemic brought the plight of inter-state migrant workers to
the forefront. Restricted movements as a result of the lockdown
have caused unprecedented challenges for migrant workers as seen
from reverse migration of out-of-state workers. We foresee that
this labour issue at site and factory level will impact work
completion and materials supply. We also anticipate an impact on
material cost due to shortage or high demand of material and
inability of manufacturers to supply on time which may affect time
delivery. In the wake of longer-term lockdowns and the implications
of social distancing at the workplace, real estate developers will
need to explore transformative pathways for business continuity in
a sustained manner - providing products and services for
LEADERS SPEAK –
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
7
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
the urban setting. Given that standard real estate business
processes are project-based and consist of fragmented value chains,
the impact of externalities such as COVID-induced operational
disruptions will require an integrated construction process which
focusses on local procurement. One of the key impacts of this
ongoing challenge is the fact that “Home” has become the refuge. We
are very optimistic that this will fuel the growth of the sector
going forward.
Since the onset of COVID-19, we have ensured that all our staff and
contractors at our operational properties have been briefed on
necessary precautions and are fully equipped with protective
equipment, as they play a critical role in ensuring delivery of
undisrupted essential services to our customers. The safety and
well-being of our staff, tenants, customers and contractors remains
our foremost priority, and we are closely monitoring the prevalent
macroeconomic conditions, assessing the customer demand,
construction supply chain and market regulations. We realise there
is an urgent need to integrate environment, social and governance
considerations into corporate action and we will continue to
emphasise these in our decision making.
Since launching our Sustainability Policy in 2019, we have
communicated its principles and practices across the organisation.
Our decision-making process has an embedded understanding of how
our activities make an important contribution to developing a
sustainable future while also providing benefits to everyone
involved in our business. In line with Mahindra and Mahindra and
its group companies’ commitment to carbon neutrality by 2040, we
have set science-based targets and are actively
pursuing strategies to reduce Greenhouse Gases (GHGs) emissions in
what we build. This year, we are setting ourselves a more ambitious
5-year sustainability roadmap, which will allow us to future-proof
our company and create healthy sustainable habitats for our
customers.
At Mahindra Lifespaces, we have been updating our product offerings
anticipating the changing demands of our customers. The year 2019,
saw the successful launch of our affordable housing project,
Happinest Kalyan, which was rated platinum by IGBC. Happinest
Kalyan takes forward the legacy of our existing products of
integrated cities and industrial clusters and residential projects
(mid-premium segment and affordable housing) that constitute a 100%
certified green portfolio. We are committed to continue to set the
standards in our industry for sustainable development.
This year, Mahindra Lifespaces presents ninth edition of its
sustainability report, highlighting our business activities,
products, and solutions contributing towards sustainable urban
development across our projects.
Regards Arun Nanda Chairman
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
8
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
LEADERS SPEAK –
Dear Stakeholders,
I am happy to share this note for the ninth Annual
Sustainability
Report. This year, at Mahindra Lifespaces, we have stayed true to
our commitment to provide sustainable and transformative
urbanisation of: ‘Building Responsible and Inclusive Communities
(BRIC) by Brick’: Beyond Tomorrow This was achieved through the
alignment
of our business, governance and organisational strategies
with
our credo to ‘Sell Genuinely, Build Responsibly, Deliver on
Time’.
During these unprecedented times, as the effects of the COVID-19
pandemic are
being experienced around the world, our resilient business strategy
focused on business continuity, planning, and involving the various
dimensions and functions in our organisation has held us in good
stead. We are confident that our approach has helped in our
response to unforeseen emergencies and will continue to accelerate
our business recovery post-COVID. In addition to staying resilient
in the crisis, as a responsible business, we continue to embody an
inclusive approach for our stakeholders by striving to help all of
them in the current situation in order to secure collective
prosperity. As a forward-
thinking organisation, Mahindra Lifespaces is well equipped to
address such challenges and quickly adapt to the “new normal”,
enabling us to innovate and drive sustained and synergic growth for
our business and stakeholders.
We have made notable progress in advancing our efforts in ESG
(environmental, social and governance) and climate change efforts
as envisioned in Sustainability 2.0, formulated last year. This
leadership is reflected in improved rankings in voluntary
disclosures – Climate Disclosure Project (CDP) – ranking of B from
D- last year, CDP supply chain ranking of A-; Global Real Estate
Sustainability Benchmark (GRESB) - ranked 5th from previous 10th in
Asia. Our commitment to sustainable real estate development was
demonstrated through diverse strategic sustainability initiatives.
In transitioning towards decarbonisation, Mahindra Lifespaces
(MLDL) and fellow subsidiaries (MWCDL, MWCJL) are the only real
estate companies in India to get science-based targets (1.5°C
pathway) approved by SBTi in November 2019. Further, we also
drafted a carbon neutrality plan, which will steer the Company
along its low-carbon business strategies. The Mahindra TERI Centre
of Excellence was established as a commitment to furthering
innovative climate solutions in India with a vision ‘to build a
greener urban future by developing innovative energy efficient
solutions tailored to Indian climates’ that enable thermal comfort,
visual comfort, and water resilience. The centre received
accreditation in the current year by the National Accreditation for
Testing and Calibration Laboratories (NABL), provided testing
services for 75 innovative and emerging energy efficient building
materials and products and assembled state-of-the-art facility
‘Guarded Hot Box’ for testing building material assemblies.
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
9
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
We continue to execute our strategy of green buildings to provide
long- term benefits to our occupants as a testament towards
environment stewardship. During the year, we continued our efforts
to maintain our 100% green portfolio by certifying ongoing projects
such as Luminare, Gurugram (rated platinum) and Vicino, Mumbai
(rated Gold) under IGBC Green Homes. Mahindra Lifespaces went on to
receive the Green Excellence Award 2020 as a ‘Green Construction
Company’ at the iDAC (Infrastructure Development Architecture
Construction) Expo.
We engaged with our top 100 suppliers/ contractors to drive Green
Supply Chain initiatives in their respective operations and
launched the code of conduct and self-assessment for suppliers/
contractors in a bid to strengthen sustainable business practices
in the value chain. Pertaining to onsite operations, implementation
of occupational health and safety continued to record zero
reportable accidents. We are also pleased to share that all our
sites and offices have implemented ban on single-use plastics. In a
marked change in assessing site sustainability we have
institutionalised sustainability maturity assessment as a mechanism
to engage, improve site sustainability performance which has
resulted in an improved performance, heightened awareness and
implementation of initiatives across locations.
The cross functional team (CFT) constituted for water management in
last 2018 has resulted in enhancing water productivity across
locations. MWC Chennai has developed a water security plan with
focus on conservation, rainwater harvesting, and strengthening of
grey water infrastructure. We initiated plans to divert waste from
our MWC Jaipur away from landfills, and similar activities at MWC
Chennai resulted in over 93% waste successfully diverted away from
landfill. The Indo German Chamber of Commerce recognised MWC
Chennai for outstanding sustainable business practices.
During this year, our engagement on societal responsibility through
CSR activities covered health, environment, and education.
Awareness drives were conducted at all our locations to sensitise
customers and communities on necessary precautions towards
COVID-19. To mobilise environmental responsibility across schools,
our green army initiative facilitated savings from water and energy
conservation and waste management with the participation of over
18,000 children and 72,000 citizens across 91 schools, covering 7
MLDL properties across India. Our support extended to educational
activities included a diverse group of beneficiaries through
vocational skill development training programs; till date, we have
trained 2,023 people.
The Indian Chamber of Commerce awarded Mahindra Lifespaces the
Corporate Governance and Sustainability Vision Award 2020, in
recognition of sustainable performance and corporate social
responsibility. Building on the progress achieved thus far, we are
developing a 5-year roadmap (2020-2025), to guide us in our future
journey. We firmly believe that in order to realise our mission, we
will forge meaningful partnerships to turn sustainability
commitments into concrete actions, thereby creating value for all
our stakeholders. This ninth edition of our Sustainability Report
highlights how our sustainability approach generates value for our
stakeholders and reinforces resilience into our business and
services.
Regards Sangeeta Prasad MD & CEO (till July 2020)
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
10
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
LEADERS SPEAK –
I am delighted to present you with Mahindra Lifespaces’
Sustainability
Report for 2019-20. The report provides insight into the progress
made by us towards fulfilling our social and environmental
responsibilities.
Over the last 25 years, Mahindra Lifespaces has paved its path as a
leading real estate
developer and pioneer in sustainable urban development.
We are redefining the market by providing superior products
which are aligned with the needs and aspirations of customers. With
three
distinct products: Lifespaces, Happinest, and Integrated Cities and
Industrial Clusters, we cater
to a wide range of customers.
Increasing population and urbanisation, rising aspirations,
supportive policy environment, and significant housing shortage
have shone a spotlight on the need for affordable housing. Driven
by its purpose of Creating the Happiest Places to Grow, Happinest
accords the
unstoppable India with an opportunity to invest and adopt a dynamic
lifestyle by providing low cost, high-quality, and
technology-enabled homes. We put customer dreams and desires at the
forefront, which is reflected through our focus on design, quality,
and construction planning. In November 2019, we launched Happinest
Kalyan in a record time of eight days from the date of the land
acquisition. The launch was a great success, with over 70 percent
of apartments already sold.
In the mid-premium residential segment, we continue to focus on our
core markets – Mumbai, Pune, and Bengaluru. Last year, we launched
Vicino in Mumbai. In FY2020-21, we will focus on strengthening our
brand awareness and providing a differentiated customer experience
across the purchase and occupancy life cycle. Our Integrated Cities
and Industrial Clusters continue to attract growing businesses and
facilitate economic growth in the country by providing world-class
plug-and-play infrastructure, strategic location advantages, and a
range of value-added services for its occupants.
With projected increase in urbanisation and the building stock, it
is imperative to incorporate the elements of sustainability in the
design as well as construction stage. Customers are also
increasingly becoming aware of the benefits of green buildings,
resulting in a high demand. We, at Mahindra Lifespaces, believe
that sustainability is the need of the hour. Our green buildings
offer advantages to customers in the form savings in electricity
and water costs, and healthier homes. It also translates to
improved cost efficiency during construction of buildings.
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
11
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
In 2015, we had formulated a five-year strategy and roadmap to
ensure progressive realisation of sustainability targets by 2020.
We are in the process of developing our Roadmap 2025 with bold
targets to take us forward on our sustainability journey. In
addition, we will focus our efforts on adopting innovative
technology in our day-to-day operations and making our construction
sites safer for the workforce.
Real estate has felt the impacts of COVID-19 and Mahindra
Lifespaces was no exception. Our primary responsibility has been to
ensure the safety and well-being of our staff and migrant labor at
our project sites. As a responsible corporate citizen, we worked
tirelessly over the period of the lockdown to provide conducive
living conditions, assured supply of essentials, continuing
employment and ongoing health support for the labor force at our
project sites. However, we feel that the ongoing crisis also
provided opportunities to accelerate change, take strategic
actions, and create an agile organisation to emerge as winners. We
have been keeping an eye out on opportunities arising out of this
disruption. Some of the trends gaining further importance include
changing perception of customers, increased value chain control,
sustainability, and investment in technology and human
capital.
With the grave effects displayed by the pandemic, homebuyers are
re- assessing and accelerating their focus towards the ownership of
good quality homes rather than tenancy in compromised conditions.
The way we live and work is also changing. The aspects of the ‘new
normal’ such as work from home, social distancing, and hygiene and
wellness are likely to result in redesigning of homes, increased
demand for amenities and services, and adoption of technology. For
example, the mid-premium and luxury segment would require indoor
spaces for professional and personal requirements. The demand for
tools and equipment to enhance indoor health will also increase. We
are engaging regularly with our customers to understand their
expectations and incorporate them into our forthcoming
projects.
Technology is playing a critical role in shaping the real estate
sector, with digital technologies such as virtual reality,
cloud-based solutions, and blockchain enabling better collaboration
with stakeholders, especially customers and suppliers, and
providing more control over the value chain. We are exploring and
investing in innovation and technologies to build our in-house
capabilities on design management, construction management
(including safety and quality), and delivery and sales management.
Recently, we digitally enabled our entire sales transaction at one
of our projects. With uncertainty over the availability of labour
force in the coming months, we are also evaluating and conducting
trials in construction automation and pre-fabrication.
The convergence of technology and sustainability will also offer
long-term benefits. Integration of the Internet of Things (IoT) and
sensor technology will enable more efficient operations and
data-driven decision making for all phases of project lifecycle.
Houses equipped with IoT can monitor and optimise their resource
consumption, with energy consumption reducing by as much as 10%
between 2017 and 2040.
Building on our legacy as a leader in sustainable urban
development, Mahindra Lifespaces will continue to make efforts to
accelerate growth. I would like to thank all our employees and
business partners who have contributed to our sustainable growth
journey. We look forward to your feedback and suggestions, as we
forge ahead on our sustainability journey.
Regards Arvind Subramanian MD & CEO (With effect from July 1,
2020)
12
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
A YEAR IN REVIEW
`5,206.94 Million 0.08 `291
874 kl 0.00186 GJ/Sq.ft
0.85 tCOe/acre
INTELLECTUAL CAPITAL NATURAL CAPITAL
1% 6%10% 1%
Walling and roofing materials
at Residential
at IC&IC
35%
Customer satisfaction index
26.8%
2% 65%
4.17 0 16% MCARES score
(out of 5)
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
13
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
IMPACT OF VALUE-ADDED INITIATIVES
`28 Million `77 Million `188 Million `2.2 Million `2.3 Million
Spending on
environmental initiatives
Spending on energy saving
material use efficiency
Spending on increasing
material use efficiency
‘Best CSR Impact Award’ Mahindra World City, Jaipur
1st rank in the housing category in Swachh Bharat drive Project
Antheia
‘Sustain Award 2019’ ‘Indian large companies category’ Mahindra
World City, Chennai
Green Excellence Awards 2020 in ‘green construction company’
Mahindra Lifespaces
‘bespoke award in deployment of technology’ Mahindra World City,
Chennai
‘bespoke award in sustainability’ Mahindra World City, Jaipur
Corporate Governance and Sustainability Vision Award 2020 in
Sustainable Performance & Corporate Social Responsibility
Mahindra Lifespaces
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
14
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
ENSURING EMPLOYEE WELL-BEING AND BUSINESS CONTINUITY
OUR RESPONSE TO COVID-19 PANDEMIC
The coronavirus pandemic has infected people in 219 countries and
territories with more than 46.8 million infections confirmed so
far. In India, it has already affected more than 8.26 million
people and the numbers are rising every day2. In order to curtail
the adverse health impacts, the Governments across world imposed
strict containment measures in the form of nation-wide lockdown and
restrictions on activity and mobility. Such measures across the
world have fuelled the ‘Great Lockdown’ recession, the likes of
which have never been seen in the history of the world. The
real-estate sector has also felt the pandemic and the slowdown in
the economy.
Our first and foremost priority has been to ensure the health and
safety of our employees, labour workforce, customers, and other
stakeholders. Construction activity at project sites were stopped
in March 2020 in compliance with the Government’s directives. In
order to reduce the migration of our labour force to their native
regions, we provided accommodation and other essentials like food,
health check-ups, etc. and educated them on social distancing
measures, use of masks and personal protective equipment, and
personal hygiene. We also conducted awareness sessions and mock
drills with all our contractors emphasising the moral and legal
responsibility to support the workforce. We also liased with local
labour and health authorities regarding the operation and
preparedness.
In such uncertain times, business resilience and continuity
planning have never been more important and relevant. Mahindra
Lifespaces believes the private sector should focus on mitigating
financial and operational instability, and building resilience,
that will enable them to contribute effectively to bolster the
economy. We established a cross-functional Rapid Action Force (RAF)
to monitor the situation and suggest effective actions. Daily calls
were organised with the RAF and Safety function to coordinate
frontline operations.
Mahindra Lifespaces has also leveraged digital and technology
solutions for both internal operations and customer interactions.
We showcased agility and resourcefulness, developing a
technology-driven business continuity plan two weeks before the
lockdown was imposed and migrating all our employees to a
work-from-home environment. Training sessions, leadership
communications, and team building events were also regularly
organised to engage them, and help them transition to the new
normal. We organised online sessions on health and wellness like
pranic meditation sessions, basic functional exercises etc. We also
conducted sessions with doctors on topics such as immunity
building, understanding COVID-19 symptoms, among others. In
addition, we also liased with our insurance partners to facilitate
hospitalisation of affected employees.
2 As on 4th November 2020
Our efforts to ensure employee well-being during COVID-19
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
15
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
We also conducted the meeting of Board of Directors through
videoconferencing. Adapting to the new way of operating, we also
initiated processes such as prospect reach out, sales, and customer
servicing remotely, and provided timely updates to our customers
through various channels of communication.
Some of our sites have also leveraged the CSR funds to create
awareness amongst stakeholders. We donated INR 5.25 million to our
workmen in residential businesses as well as the operation and
maintenance staff within Mahindra World City. Mahindra World City,
Chennai also conducted awareness sessions for residential and
commercial customers. In addition, our team fumigated all public
places in and around the project site. We also distributed hand
sanitisers to essential workers like doctors, nurses, and police
force.
With the Government lifting lockdown measures, we have resumed our
operations in a phased manner while enforcing strict protocols for
health and safety. We have also developed and conveyed to our
employees ‘Back to Office’ guidelines highlighting aspects like
behaviour at workplace, maintenance of hygiene and safe practices,
and guidelines in case of sickness and health emergency. All the
security personnel and site sales team were trained on the SoPs.
Thermal screening is mandatory at all locations, along with hand
wash/ sanitisation. Each site is required to submit compliance
status.
As a next step, Mahindra Lifespaces is assessing risks and
opportunities due to the pandemic and developing an effective
action plan for departments to respond appropriately. Some of the
trends gaining further importance in the post-COVID world include
changing expectations of customers with respect to product design,
increased value chain engagement, and reskilling of the workforce.
We aim to incorporate the lessons learnt to create long-term
transformative strategies and become resilient against future
disruptions.
Krity Sharma Chief People Officer
THE ONSLAUGHT OF COVID-19 PANDEMIC WARRANTED AN UNPRECEDENTED
NATIONWIDE LOCKDOWN
WHICH MANDATED IMMEDIATE LARGE SCALE EFFORTS. TRUE
TO OUR VALUES, WE RESPONDED SWIFTLY TO ENSURE THE SAFETY OF OUR
STAKEHOLDERS AND SERVE THEIR NEEDS WITH ESSENTIAL SUPPLIES. A SAFE
AND SECURE LIVING SPACE WITH ACCESS TO ESSENTIAL SUPPLIES AND WATER
BECAME A PRIORITY AND HAS BEEN PROVIDED TO THE WORKFORCE AT SITES
ACROSS THE COUNTRY. FOOD, MASKS, SANITIZERS AND PPE KITS ALONG WITH
INFORMATION KITS ON PRECAUTIONS TO BE TAKEN FOR SAFETY, HEALTH AND
HYGIENE, WERE ARRANGED FOR THOUSANDS OF COMMUNITY MEMBERS,
FRONTLINE HEROES AND OUR WORKFORCE.
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
16
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Compliance with corporate governance standards
Complete transparency and adequate disclosure practices
Communicate externally, how the Company is run internally
Corporate success much above individual preferences
Trusteeship of shareholder capital rather than ownership
Compliance with the laws of the geographies in which we
operate
STRENGTHENING INTEGRITY AND COMPLIANCE We, at Mahindra Lifespaces
embed the highest standards of corporate governance in our
operations, with focus on managing our affairs in a fair and
transparent manner. Our governance framework, in accordance with
evolving regulations, is driven through our ambit of policies. The
systems allow us to build trust, ownership, and confidence among
all our stakeholders, while embedding effective, accountable and
transparent practices.
Core elements of our governance philosophy Ashvita, Hyderabad
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
17
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
OUR GOVERNANCE STRUCTURE
The governance structure at Mahindra Lifespaces utilises a
multi-tiered approach, that ensures responsive, inclusive, and
participatory decision- making. The Board of Directors provide
guidance to the management on various strategic aspects and oversee
the actions and results toward achievement of long-term objectives.
As on date, the Company’s Board comprises of six members, including
two women Directors3.
3 For more details please refer to the website.
https://www.mahindralifespaces.com/about/board-of-directors
Our Board committees
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
18
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
LEADERSHIP COMMITMENT TO SUSTAINABILITY
Our leadership is committed and drives the sustainability agenda
within the organisation. Our top-down, tiered governance structure
provides a solid foundation that anchors our sustainability
strategy and targets. All our business units have different roles
to play and assigned responsibilities to support
implementation.
Key sustainability topics discussed by the Board in 2019-20
Information shared with the Board Information shared with the
BoardAreas Areas
Strategic initiatives
risks and opportunity » Sustainability policy
» CDP disclosures (climate change and stakeholder engagement)
» GRESB » 8th edition of Sustainability Report
» Green Army (reach and impact) » Mahindra Green School » Mahindra
TERI CoE » Green Supply Chain Management
policy and EHS policy (upgradation and implementation)
» Financial performance and capital forecasts
» Business plans, operating and capital expenditure budgets » Green
certifications for the projects
» Water security plans » Site sustainability maturity model » Zero
waste to landfill (ZWL)
initiatives » Plastic ban and EHS policy » Science Based Targets
for MLDL,
MWCDL, and MWCJL » Carbon neutrality
For more details on our sustainability governance structure, please
refer to
https://www.mahindralifespaces.com/wp-content/uploads/2019/12/Sustainability_Report_2018-19.pdf
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
19
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
FOCUS ON ETHICS AND INTEGRITY
We have zero tolerance for bribery and/or corruption and our
policies, governance philosophy, and robust governance mechanisms
ensure that there is no breach in conduct by any of Mahindra
Lifespaces’ employees. We have formulated separate Codes of Conduct
for our Directors, Independent Directors, Senior Management, and
Employees. It provides in-depth coverage on dealings with
suppliers, customers, and other business partners. Furthermore, the
code covers issues related to ethics, bribery, corruption, and
provides guidance for recognising and dealing with these issues.
Our codes and policies are available to all our stakeholders,
including our employees on internal and external communication
portals. We also provide them in vernacular languages,
wherever applicable. Familiarity of the codes and policies is
provided as a part of the induction and onboarding. Refresher
trainings are driven through the internal communication portal.
This year, we amended our Green Supply Chain Management Policy to
enhance coverage and ensure compliance by contractors, suppliers,
vendors, transporters, service providers, and business partners. We
also published the Code of Conduct for Suppliers/ Contractors this
year and communicated through appropriate channels, to ensure that
the processes followed by them are socially and environmentally
responsible.
Mahindra World City, Chennai
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
20
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Environment, Health & Safety Policy to improve our
environmental performance while preventing accidental injuries and
occupational ill health
Sustainability Policy to integrate sustainable practices within
operations and ensure equitable and inclusive growth for all our
stakeholders
Policy on Prevention of Sexual Harassment for protection of women
at the workplace
Code of Fair disclosures for transparent, continuous and
non-selective information dissemination to shareholders
Green Supply Chain Management Policy to encourage contractors,
suppliers and vendors to ensure total compliance for better health,
safety and environment
Corporate Social Responsibility Policy for contributing to the
social good
Quality Policy for continuous improvement and sustainable
development
Whistle Blower Policy to reinforce robust implementation of the
Company’s code of conduct
A snapshot of our policies
The Corporate Governance Cell periodically reviews the efficacy of
the codes and policies and suggests amendments on the basis of
market trends, global good practices, and feedback provided by
stakeholders. We also conduct periodic review and evaluation of the
policies internally through The Mahindra Way (TMW) as well as
through Integrated Management System (IMS).
All stakeholders can freely communicate their concerns and
grievances through vigil mechanism set down in our Whistle Blower
Policy.
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
21
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
REGULATORY COMPLIANCE
The company operates in a highly regulated sector, which has
experienced a drastic shift in regulatory and market dynamics.
These changes have been instrumental in providing our customers the
rights and provisions for legal actions against any infringement of
their rights. However, for Mahindra Lifespaces, the impacts of such
changes were minimal. This was made possible due to our commitment
towards sustainable business practices, ethical values, and driving
positive change in the lives of stakeholders and communities.
Since inception, we have been setting benchmarks as a responsible
corporate citizen. We were one of the first real estate developers
in India to adopt GST regime, as well as share the benefit of input
tax credit with our customers. We also adopted the Real Estate
(Regulation and Development) Act, 2016 framework with swiftness for
all our applicable projects. All projects are executed after an
in-depth due diligence and sanction of relevant approvals. A strict
adherence to socioeconomic and environmental regulatory compliances
is ensured and every project is launched only after relevant
approvals have been procured. This is supported by an inhouse
regulatory risk management process that maps emerging regulations,
allowing us to have a seamless transition in regulatory regime. Our
policies, procedures, and practices surpass minimum requirement for
any regulation, providing us with the support to swiftly implement
necessary changes. As a result, no penalties or fines have been
imposed by any regulatory authority for noncompliance with any
rules and regulations (Economic, Environmental and Socioeconomic),
in the reporting period. Some of our achievements are:
» We have continued adopting RERA framework for all our projects; »
We published our fourth annual Business Responsibility Report
(BRR),
in line with SEBI’s notifications and nine principles of the
Government of India’s ‘National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business’;
» We also abide by the Competition Act, 2002 - a mandatory
legislation that deals with anti-competitive behaviour and all
labour related legislations of the Central and State
Governments.
Luminare, Gurugram
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
22
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
FUTURE-PROOFING OUR BUSINESS
Risk management at Mahindra Lifespaces is achieved through an
enterprise wide risk management framework (ERM). The framework is
utilised to identify, monitor, and mitigate business risks from
operations, compliance, strategy, financials, governance,
reputation, and processes. This is driven by a Risk Management
Committee, consisting of two Directors and the Chief Financial
Officer, that periodically reviews the risk
management plan and oversee the complete process.
The ERM framework for the Company is dynamic. It has evolved with
the integration of climate and other ESG risks for improved risk
mitigation. The Company also leverages globally recognised
reporting frameworks and disclosures such as Carbon Disclosure
Project (CDP), Global Real
* COSO: Committee of Sponsoring Organisations
Our ERM Framework
» Identified by Risk Champions
teams
site level for Board’s approval
» Specific action plans prepared for critical risks
» Project-level risks are reviewed by regional managers on a
monthly basis and presented to the top management during quarterly
reviews
» Risk audits are conducted across locations
Our approach to risk management is aligned to the COSO*
Framework.
IDENTIFICATION CATEGORISATION MITIGRATION MEASURES MONITORING
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
23
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Estate Sustainability Benchmark (GRESB), and Task Force on Climate-
related Financial Disclosures (TCFD) to widen the coverage of
climate related risks and opportunities.
We also identify short, medium, and long-term climate and ESG risks
for our operations, suppliers, and customers. Financial planning is
conducted on the basis of these risks and their impact on business
continuity. For upstream, the risks associated with supplier and
procurement is factored
into business planning. Labour productivity and operational
disruption due to climate change is factored in through labour
welfare and weather preparedness planning in operations of our
residential business. For downstream the impacts on climate change
on customers provides us an opportunity to deliver a green product
portfolio. Our environmental management system also tracks the
risks associated with climate and ESG in the impact register. This
helps us assess and mitigate risks at site level.
Extreme weather such as heavy rains and flooding could result
in:
» Disruption to construction activities at project sites » Costs
incurred to repair or replace damaged or
destroyed assets
» Potential for cross infection of COVID-19 among workers and
project staff during construction activities. Implications on
stoppage of onsite construction activities
» Monsoon preparedness plan
» Revised SoP
» Manufactured » Financial
» Manufactured » Human
ACUTE (CATASTROPHIC EVENTS)
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
24
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Unavailability of water could lead to: » Delayed occupancy
certificate which delays profit
realisation » Hamper the reputation among potential clientele »
Impact business continuity of customers at
Integrated Cities and Industrial Clusters
» Unavailability of water could lead to reduced availability for
occupants of housing projects, which could impact the consumer
preference.
» Unavailability of curing water may cause delay in the project
completion and have negative impact on the quality of
construction.
» Formulation of a robust water security plan
» Enhancement in grey water infrastructure and strengthening of
rain water harvesting infrastructure
» Provisioning of smart meters
» Innovation in material use
» Natural » Manufactured » Financial » Social &
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
MLDL's mitigation strategy
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
25
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Risk description
P H
YS IC
A L
Capitals impacted
Intense heat would affect: » Working conditions during the
construction phase » Worker health issues through heat
strokes
resulting in absenteeism
Potential for increased insurance costs as a result of flooding at
project sites during construction stages.
Higher temperatures would result in » Thermal discomfort related to
customer occupancy » Increased operating costs by customers
and
thereby cost of ownership of purchased property
» Dynamic working conditions and hours
» Appropriate hydration and rest areas are provided
» Customized emergency preparedness and response plans
» Innovation in building materials, e.g. Insulation, ventilation,
etc.
» Manufactured » Human
» Manufactured » Financial
TH
TH
TH
PFI
PFI
PFI
Col
Col
Col
Changes in climate patterns and extreme variability in weather
events would cause::
» Disruptions to supplier delivery, logistics and overall operating
costs
» Damage to assets and revenue generation » Heatwaves would result
in increased cooling demands
and increase the electricity consumption as high as 15% during days
of intense heat.
» Integrated Cities and Industrial Clusters
» Robust Supply chain » Diversification of suppliers » Innovation
in building
materials
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
MLDL's mitigation strategy
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
26
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
T R
A N
S IT
IO N
We anticipate that the ESG regulations for the construction sector
will change as India gears up to meet its NDC and SDG targets.
Changing policies related to stringent building standards, emission
caps, changes to subsidies etc.
Sectoral policy changes such as mandate for energy star rated
homes, green building certification, hike in water tariff and
stricter building standards, energy rating are the risks for the
company and would require investments.
» Institutional regulatory and ESG monitoring
» Green building policy for adoption of green homes
» Natural » Manufactured » Financial » Human » Social &
relationship
EMERGING REGULATIONS
Non-compliance to any environmental and social acts for protection
and welfare (EPA Act, EIA regulations, BOCW Act) have an
implication on business and withdrawal of tax benefits.
» Institutional monitoring for non-compliance and mitigation
plans
» Natural » Manufactured » Financial
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
Under assessment
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
27
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Low carbon building technology may not find easy adoption amongst
customers such as gypsum fiber reinforced concrete.
» Capacity building of the customers
» Intellectual » Manufactured » Financial
Litigation associated with water demand, energy source, and
building structural quality.
Rising costs of ownership (for customer) of buildings and
maintenance to manage climate risks. Construction portfolio
vulnerable to climate change will become less desirable over
time.
» Incorporation and monitoring of litigation through ERM
» Integration of IoT based smart solutions
» Implementation of IGBC, LEED and GRIHA systems for built
portfolio.
» Social & relationship
» Manufactured » Financial
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
MLDL's mitigation strategy
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
28
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Risk description Capitals impacted
Reputational risk range from poor quality of buildings, customer
dissatisfaction, poor customer relation, delay in handover to
inadequate compliance, insufficient facility to labourers and
erosion of shareholder value and market capitalisation.
Potential challenges in access to new and emerging markets
including special economic zones (SEZs) and provision of green
infrastructure for industrial end- use.
» Periodic review and upgradation in the risk assessment
register
» Dynamic product portfolio to match changing customer
preference
» Financial » Social &
Decreased revenues due to reduced demand for products and
services
» Product diversification and penetration
Medium – upto INR 1 million - 10 million
High – greater than 10 million
CoI: Cost of implementation of mitigation strategy
Short – 0-1 years Medium – 1-5 years Long – 5-15 years
PFI: Potential Financial Impact TH: Time Horizon Low – upto INR 1
million
Medium – upto INR 1 million - 10 million
High – greater than 10 million
MLDL's mitigation strategy
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
29
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
TRENDS SHAPING OUR SECTOR The global pandemic has transformed the
future of society, businesses, and the economy. The current
scenario has reinforced the need to assess the major trends
impacting business, examine related risks and opportunities, and
redefine organisational strategy, goals, and targets to ensure
business continuity.
We, at Mahindra Lifespaces, continuously monitor major social,
environmental, economic, political, and technological changes which
are
relevant to our work and incorporate them in our strategy. We
believe our resilience and our ability to adapt to these rapidly
changing conditions is essential to our long-term success. Of the
key trends presenting major challenges to government and industry
over the coming years, ten are particularly relevant in shaping our
future strategy. Our ambitions, goals, and targets reflect these
global and regional trends.
Trends Our response
Accounting for climate change
A new concept for real estate investors is that of climate risk and
resilience. The question of how exposed an asset or a portfolio is
to the various impacts of climate change has become a key concern
and has been outlined by the Task Force on Climate-related
Financial Disclosures. The real estate industry has begun
developing advanced strategies to identify, understand, and manage
climate-related risks.
» Climate-related and ESG risks are integrated into the ERM
framework
» We have taken ambitious science-based targets to limit
temperature rise to 1.5°C
» We also aim to become carbon neutral by 2040 (Please refer to the
section on Strengthening integrity and compliance and Natural
capital)
Combating water crisis
The severity of water challenge has risen globally, with developers
struggling to meet demand for construction, landscaping, and
customer needs. However, this also provides opportunities for
integration of water efficient infrastructure such as rainwater
harvesting to ensure conservation.
» We have constituted two cross-functional teams at Mahindra
Lifespaces and Mahindra World Cities to develop, monitor, and
evaluate water conservation strategies.
(Please refer to the section on Natural capital)
Circularity in real estate
The real estate sector has a large resource footprint. Adopting
circular economy models offers significant financial returns while
reducing the overall resource footprint and greenhouse gas
emissions associated with design, construction, and use of
buildings. It also places emphasis on techniques that minimise
waste generation during construction and deconstruction.
» We are committed to creating Zero Waste to Landfill sites at
Chennai and Jaipur
(Please refer to the section on Strengthening integrity and
compliance and Natural capital)
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
30
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Trends Our response
Rise of green buildings
Rising environmental awareness, evolving regulatory mandate, and
incentives for customers and developers, will see the green
building segment double by 2022. Green buildings help in improving
efficiencies during construction and use phase, leading to
long-term benefits for occupants. The use of technological
interfaces such as Internet-of- things (IoT) also optimise
operations of the built environment in terms of predictive
maintenance and resource conservation.
» We have a 100% green certified portfolio (Please refer to the
section on Manufactured capital)
Changing customer expectations
Today’s customers expect residential developments to have
interventions that allow them to reduce their cost and
environmental footprint. Interventions such as renewable energy,
rainwater harvesting, waste segregation etc. are increasingly
becoming popular among conscious home buyers. In current scenario,
the focus on health and wellness and demand for telecommuting has
also increased. Additionally, with the emergence of electric
mobility, developers are exploring ways to design the built
environment to facilitate electric vehicles and supporting
infrastructure.
» We leverage digital platforms to understand customer
behaviour
» We also conduct customer satisfaction surveys to capture their
sentiment and identify areas of improvement
(More details in Social and relationship capital)
Leveraging technology
Awareness and use of property technology (Proptech), digital tools,
and big data techniques is growing rapidly. These technologies
enable better collaboration with stakeholders and provide more
control over the supply chain. COVID-19 is also spurring the
adoption of these technologies by real estate developers,
especially in delivery and sales management. Such technologies
would also play a key role in assessing the health of a building –
by tracking metrices such as ventilation, air filtration,
etc.
» Mahindra Lifespaces has been utilising technology for optimising
resource consumption in the construction and use phase, and
providing a seamless sales and handover experience to
customers.
(More details in Intellectual capital)
Emphasis on transparency and disclosures
The need for transparent processes, high ethical standards, and
timely disclosure has been highlighted by investors, customers, and
other stakeholders. In this regard, frameworks such as GRI, CDP,
GRESB, and TCFD are increasingly finding acceptance among real
estate developers. These frameworks are also being leveraged to
identify material issues and incorporating risks and opportunities
into strategy using forward-looking tools such as scenario-based
analysis.
» We are active participants of GRI, CDP and GRESB
disclosures
» We publish our BRR annually in line with SEBI regulations
» We leverage TCFD recommendations to sharpen our focus on
climate-related risks and prioritise initiatives
(More details in Strengthening integrity and compliance and GRI
Index)
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
31
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Trends Our response
Sustainable development through SDGs
Businesses, including real estate developers have great potential
to contribute towards achieving the goals and targets laid down by
the SDGs. With only ten years left to achieve this agenda,
ambitious actions are required to deliver the Global Goals by 2030.
SDGs help businesses align their strategies with global priorities,
provide avenues for growth, foster innovation, and strengthen
stakeholder relations.
» We align our sustainability initiatives with SDGs (Aligned with
all capitals)
Evolving regulatory landscape
The developers are under immense pressure as the regulatory systems
of the country are focusing on ensuring consumer protection. A
government crackdown on banking-sector malpractice combined with
growing credit risk among developers, has seen ESG compliant
developers enjoying better reputation and benefits. Citizens are
also becoming more aware about environmental protection. Fines and
work stoppage due to complaints and regulatory non-compliance are
becoming increasingly common. Furthermore, the evolving regulatory
landscape means that the sector should be prepared for enhanced
regulatory enforcement.
» We comply with applicable socioeconomic and environmental
regulatory compliances
» We have an inhouse regulatory risk management process that maps
emerging regulations
(More details in Strengthening integrity and compliance)
Mahindra Lifespaces: Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
32
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Our approach to sustainability Our sustainability journey
Launched first pre-certified green homes
Disclosures to CDP and GRESB
Co-founded Sustainable
Making Sustainability
TERI Centre of Excellence
report
Sustainability 1.0 Sustainability 2.0
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
33
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Mahindra Lifespaces practices and promotes sustainable urbanisation
through an integrated approach to design and project execution that
is strongly rooted in environmental and social considerations. With
the Urboonisation framework, we laid down the foundations of our
sustainable development journey. In the first wave of our journey,
our efforts revolved on developing green built environment,
cascading sustainable practices across the supply chain, and
enhancing the quality of our disclosures.
Sustainability 2.0 is a manifestation of our futuristic approach.
Under this, we are focusing on moving towards carbon neutrality,
integrating SDGs into business considerations, and deepening our
engagement with customers and employees. This is being facilitated
by our Sustainability Policy which helps us to realise our mission
and create value for our stakeholders. The Policy, aligned with
other organisational policies and the Group Sustainability
Framework, comprises of four pillars.
Figure 6: Pillars of our Sustainability Policy
Sustainable Products
safe, nurturing & inspiring workplace
to drive a positive change
As a leading real estate developer, Mahindra Lifespaces is
committed to transforming India’s urban landscape; to delivering
Joyful Homecomings to our customers; to creating decent employment
opportunities; and to driving positive change in the communities
around our projects. To accomplish this, we rely on our value
creation model which not only leverages financial capital, but also
other resources like human and natural capital, innovation, and
relationship with communities, customers, peers, and other
stakeholders4.
OUR STRATEGY FOR VALUE CREATION
4 Residentialss includes all operations under Lifespaces and
Happinest; IC&IC includes all operations under Mahindra World
cities and ORIGINS
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SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Mahindra Lifespaces Pioneering development of green homes
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
As a leading real estate developer, Mahindra Lifespaces is
committed to transforming India’s urban landscape; to delivering
Joyful Homecomings to our customers; to creating decent employment
opportunities; and to driving positive change in the communities
around our projects. To accomplish this, we rely on our value
creation model which not only leverages financial capital, but also
other resources like human and natural capital, innovation, and
relationship with communities, customers, peers, and other
stakeholders4.
Our strategy for value creation
4 Residentialss includes all operations under Happinest and
Lifespaces IC&IC includes all operations under Mahindra World
cities and Origins
» Shareholder equity of INR 514.12 million » Revenue of INR
5,206.94 million » INR 308 million paid in EPS/ dividend » INR 716
million distributed as salaries and benefits to employees
» INR 32.9 million invested in CSR activities » Paid INR 1,648
million to supply chain partners
» Sustainable growth of the organisation » Creating long-term value
for stakeholders
» Number of completed projects • 4 projects under IC&IC • 15
projects under Residential
» Number of ongoing projects • 4 under IC&IC • 13 under
Residential
» 179,752 tons of raw material consumed
» Expenditure of INR 39 million (out of a commitment of INR 45
million) by Mahindra Lifespaces and INR 40 million by Mahindra and
Mahindra to promote research and development by Mahindra TERI
Centre of Excellence
» Investment in research and innovation at different sites
» Leveraging technologies for construction and sales
management
» Implementation of Green Army program in schools
» 75 walling and roofing materials tested for thermo-physical
properties
» Development of guidelines and inclusion of construction materials
and technologies in building/ construction codes, by-laws, and ECBC
guidelines
» Glare indices and visual comfort study published
» Self-reliant and zero/ low discharge townships/
developments
» 4 patents filed » Implemented a unique program on resource
management for schools and kids.
» Outreach to state and central ministries through policy
briefs
» Outreach to developers by developing design and incorporation in
building/ construction codes and bye-laws
» Successful implementation of the scalable, market-ready/
affordable building technology and or material
» Behavioral change in students and citizens in favor of
sustainable practices and lifestyle
» 17th Ranking in Great places to Work » 11,500,963 hours of safe
manhours at site
» Increase in job employability of the workforce
» Skill enhancement of contractual workers
» Development of soft skills of employees » Increase in the
Customer Satisfaction score to 75
» Sustainable supply chain
» Create long-term value for the community
» Ensure our license to operate » Enhance the goodwill and
reputation of the company
» Top 20 suppliers are ESG compliant
» 61% waste diverted from landfill » 4,342 m3 of water recycled »
Improvement in CDP and GRESB Scores (CDP score for Climate change:
B; CDP score for stakeholder engagement: A-; GRESB 5th Rank)
» Emission reduction targets approved by SBTi
» Water security study conducted for the sites
» Incorporation of sustainable practices (energy and resource
efficiency) during construction
» Enable informed decision-making for selection of energy efficient
material assemblies.
» Mainstream the materials and technologies and develop thermally
comfortable energy efficient buildings.
» Increase in water use efficiency and responsible water
consumption in residential townships
» Mainstream alternative materials and technologies and incorporate
circular economy projects in projects
» Bringing change in habits by creating a new generation of
sustainability champions
» 530 employees » 2,975 contractual workforce » Investment in
learning and development programmes • 258,940 hours of safety
trainings provided • 7,685 hours of skill upgradation
trainings
provided » Performance linked reward structures
» 16% women employees » 95% employees under 50 years of age »
Employee attrition rate of 18% » 129 first aid cases » 1,426 near
misses
» INR 32.9 million invested in CSR activities » 448 hours of
employee volunteering
» 43% suppliers and contractors reached through trainings and
outreach
» 23,805 beneficiaries in the top 5 projects » On-time delivery of
products to customers » Improved quality of products » Customers
from 7 projects engaged on sustainability
» 100% supplier adherence to policies, code of conduct, self
assessment criteria
» Total energy consumed: • 2,463 GJ in Residential • 12,442 GJ in
IC&IC
» Total water consumed: • 105.515 m3 in Residential • 2,702,717 m3
in IC&IC
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Natural Capital
Our value creation process contributes to all the pillars of our
Sustainability Policy
» All developments are green certified by IGBC/ GRIHA
» Completed developed area • 1,992 acres under IC&IC • 17.46
million sq. ft. under Residential
» Area of ongoing projects • 1,594 acres of IC&IC • 3.59
million sq. ft. under Residential
» Area of forthcoming projects • 4.32 million sq. ft. under
Residential
» 4,500 residential units handed over » 174 customers acquired by
IC&IC » 52,976 indirect jobs created by IC&IC
» Boost the stock of financial capital » Contribute to the economic
growth of the region
» 0.00186 GJ/sq.ft. energy intensity at Mahindra Lifespaces
» 4.51 GJ/acre of land developed/ maintained energy intensity at
Mahindra World Cities
» 0.079 m³/sq.ft. of specific water consumption at Mahindra
Lifespaces
» 914.70 m³/acre of land developed/ maintained specific water
consumption at Mahindra World Cities
» 0.00033 tCOe/sq.ft. of specific scope 1 & 2 GHG emissions at
Mahindra Lifespaces
» 0.8881 tCOe/acre of specific scope 1 & 2 GHG emissions at
Mahindra World City
Input Business Activities Output Outcome Impact
Land acquisition
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
Intellectual Capital: Leveraging digital technology and design
solutions
Social and Relationship Capital: Forging stronger bonds
Onward march – From the change enabling team
35
SUSTA INAB IL ITY REPORT 20 19-20 BUILDING BEYOND TOMORROW
Our stakeholder engagement process is used for fostering and
nurturing relationships with our stakeholders, which help in
strengthening strategy development and decision making. Proactive
and transparent communication channels enable us to identify and
address the needs, expectations, and concerns of our diverse
stakeholder groups and gain valuable insight for sustainable value
creation. We identify our stakeholders based on three key
dimensions – importance and influence, physical proximity, and
dependency factor. Identified stakeholder groups are then
prioritised based on their ability to influence and be influenced
by Mahindra Lifespaces. We classify our prioritised stakeholders
under inner and outer coterie. The stakeholder engagement process,
concerns and issues can be accessed at Annex 1.
CREATING VALUE FOR STAKEHOLDERS THROUGH ENGAGEMENT
Our stakeholder groups
Leaders speak
Ensuring employee well-being and business continuity: Our response
to COVID-19 pandemic
Strengthening integrity and compliance
Trends shaping our sector
Our approach to sustainability
Natural Capital: Towards operational excellence
In